Does Better Blend Franchising (BBF) control or have the right to control the Better Blend franchisee's business?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
To protect BBF's interest in and control of Better Blend, Franchisee acknowledges the following and agrees that BBF has the right to control all telephone numbers, directory listings, and internet marketing accounts related to Better Blend.
Franchisee agrees as follows:
- 11.8 Communication with Employees. Franchisee irrevocably authorizes BBF to communicate with Franchisee's employees and contractors on any matter related to the System or the Business.
Franchisee will not prohibit any employee or contractor from communicating with BBF on any matter related to the System or the Business.
11.9 Communications with Landlord and Lenders. Franchisee irrevocably authorizes BBF to communicate with Franchisee's landlord and lender(s), or prospective landlord and lender(s), about matters relating to the Business, and to provide information about the Business to them.
11.11 System Variations. BBF may vary or waive any System Standard for any one or more Better Blend franchises due to the peculiarities of the particular site or circumstances, density of population, business potential, population of trade area, existing business practices, applicable laws or regulations, or any other condition relevant to the performance of a franchise or group of franchises.
Franchisee is not entitled to the same variation or waiver.
- 11.13 Temporary Management. If (i) the Principal Executive dies or becomes incapacitated, (ii) this Agreement is terminated or expires and BBF elects to purchase assets of the Business as provided in Section 14.6, or (iii) Franchisee is operating the Business in a manner which, in BBF's reasonable opinion, constitutes a danger to the health or safety of any person, then BBF may (but is not obligated to) enter the Location and operate and manage the Business for Franchisee's (or Franchisee's estate's) account until this Agreement is terminated, the Business is transferred, the Business is purchased by BBF, or BBF returns the Business to Franchisee.
BBF's operation and management will not continue for more than 90 days without Franchisee's consent (or the consent of the representatives of Franchisee's estate).
- (c) Control. BBF shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Franchisee agrees as follows:
- 1. Conditional Assignment. Franchisee hereby assigns to BBF (or its designee) all of Franchisee's rights, title, and interest in and to all telephone numbers, directory listings, email accounts, websites, social media accounts, and all other accounts and profiles for advertising and marketing on the internet or any electronic communications network ("Brand Accounts") associated with Better Blend and registered by Franchisee from time to time in connection with the operation of Franchisee's Business, such assignment to be effective upon (a) termination or expiration of the Franchise Agreement, or (b) notice from BBF to Franchisee, at which time BBF will have the right to assume ownership of any one or all Brand Accounts.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend Franchising, LLC (BBF) retains significant control over various aspects of a franchisee's business. Specifically, BBF maintains the right to manage the business temporarily under certain conditions, such as the death or incapacitation of the principal executive, termination or expiration of the franchise agreement, or if the franchisee's operation poses a health or safety risk. During such periods, BBF can operate the business for the franchisee's account, although this management period is limited to a maximum of 90 days without the franchisee's consent.
BBF's control extends to communications and brand management. The franchise agreement allows BBF to communicate directly with the franchisee's employees, contractors, landlord, and lenders regarding the business. Furthermore, franchisees conditionally assign their rights to telephone numbers, directory listings, email accounts, websites, and social media accounts related to Better Blend to BBF. This assignment becomes effective upon termination or expiration of the franchise agreement, or at BBF's discretion, giving BBF the right to assume ownership of these Brand Accounts.
Additionally, BBF has the authority to modify system standards for individual franchises based on specific site conditions or circumstances, and franchisees are not entitled to the same variations or waivers. BBF also has the right to control the prosecution or defense of any action related to possible infringement of the Better Blend marks. These provisions collectively highlight the substantial control BBF can exert over a Better Blend franchise, impacting operational management, brand consistency, and communication strategies.